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Income and Substitution Effects: Normal Good
* The Special Case--The Giffen Good
- The income effect may be large enough theoretically to cause the demand curve for a good to upward slope.
- This seldom occurs and is of little practical interest.
distinguish between Isocost and Isocline
1. What are the uses of elasticity to the public sector and private sector? (20 marks)
Intermediate Products: Products (which includes both services and goods) that aren't produced in order to be consumed, but somewhat are produced in order to be used in the producti
who is a rational behaviour
Technical Economies: They are economies that accrue from the use of large machines with emphasis on full utilization and efficiency in production. First, there are some equip
Revise business plans to incorporate appropriate changes.
Is economics an art or a science
using the marginal utility approach, discuss how economic theory explains the optimum pattern of consumption for an individual consumer. consider how far this analysis can explain
what will cause a firms demand curve to shift: a a change in sellers profit associated with the good or service b change in technology for good cchange in non price variable in dem
The Competitive Firm - Price taker - Market output (Q) and firm output (q) - Market demand (D) and firm demand (d) - R(q) is straight line Demand and Marginal Re
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